The benchmark share indices snapped six sessions of gains on Tuesday, as investors paused ahead of announcements by major central banks this week, including the minutes of the US Federal Reserve's June meeting.

The 30-share Sensex declined 111.89 points, or 0.41 per cent, to 27,166.87, with sectoral indices led by auto, power, realty, IT and telecom bringing about the fall.

The Nifty and the Sensex opened flat to positive following Asian cues. The Nifty opened eight points up at 8,379 while the Sensex opened 62 points up at 27,341.

The 30-share index had risen over 881 points in the previous six sessions.

Brokers said that apart from profit-booking in recent gainers in an overbought market, a mixed trend in rest of Asia following overnight losses in Europe was mainly responsible for the snap.

Shares of PowerGrid (-2.3%), GAIL (-2.4%), Bharti Airtel (-2.16%), NTPC (-1.8%), Tata Motors (-1.7%), Hero MotoCorp (-1.7%), Asian Paints (-1.5%), Bajaj Auto (-1.2%), ICICI Bank (0.91%) and ONGC (-0.92%) were the top 10 losers during the session.

Coal India, Tata Steel, Reliance, L&T and HDFC were among the gainers.

Central banks in focus

The NSE Nifty finished lower by 34.75 points or 0.42 per cent at 8,335.95.

Stock markets will be shut on Wednesday for a public holiday.

Indian shares have rallied despite the Brexit vote given the optimism about the domestic economy and expectations that central banks, including the European Central Bank and Bank of Japan, will expand their monetary easing.

Still, India won't be entirely immune, an analyst warned, pointing to higher downside risks to earnings in the technology sector and to broader exports.

“For six days, we had a bull run so there has to be a breather after that,” said UR Bhat, managing director of Dalton Capital, a unit of UK investment management firm Dalton Strategic Partnership.

Stock-specific action

Fertilizer makers such as Coromandel International and Zuari Agro Chemicals fell 11.59 per cent and 4.4 per cent respectively, following the government's decision on Monday to cut retail prices of non-urea fertilisers.

Among the gainers, infrastructure company Jaiprakash Associates surged as much as 27.97 per cent after its board approved a deal to sell cement plants to UltraTech at a slightly higher value.

Shares of microfinance lender Ujjivan Financial Services gained as much as 2.23 per cent after rating agencies CARE and ICRA upgraded their credit ratings for various instruments of the company.

"Global equity markets which have been on a denial mode all through last week, reassessed the bullish intent, allowing prices to ease further for the second day. Trading holiday in US on Monday, and in India on Wednesday, also seems to have clipped the momentum, while the US jobs data and FOMC minutes scheduled for release later in the week ensured that buyers were less inclined to chase prices higher. The expansion of Cabinet evoked no major positivity, while data showing June service sector PMI falling to 7 month low gave additional reasons for investors to skim profits from the recent rally, especially ahead of the Q2 earnings season," according to Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services Ltd.

Overseas markets

Trade was thin in Asia, as financial and commodities markets in the United States were closed on Monday for Independence Day. S&P futures were down 0.2 per cent on Tuesday, suggesting a softer open when Wall Street reopens later in the day.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.8 percent, but was still within reach of its June 9 peak, having risen 5.6 percent from its low after the Brexit vote on June 23.

Japan's Nikkei ended the day down 0.7 per cent.

Related Topics